We will check that there is an overall bullish trend on a longer time frame to allow a long entry remember the
trend is your friend!

We are looking for the blue line to break out of the red channel and the black moving average.

This is the signal, if we have that and the thin turquoise line is pushing to the top then we have all the
boxes ticked.The SELL signal: (the exact opposite)

In the above screen shot you can see I have marked two valid and profitable trades, both would have been worth
over 100 pips easily, and both were picked up by the RSI very early on

RSI System

The stochastics are what I use to confirm the trade, I look for a very similar
pattern as on the RSI. In the screen shot below you can see a “perfect signal”. On average we should see at least 1of these signals per currency pair per week. In some weeks it could be as many as 3-5

Here we can see at the point I have placed the vertical line, the RSI is showing
a valid signal for a short entry as explained previously. At this point we can see the stochastic (top indicator window)are falling away and are very tightly bunched, in a neat waterfall shape.
This is exactly what we need to enter this trade.